Ahmad wants to develop a model that will help predict the cash requirement for the quarterly dividends

The model should be stated in terms of units produced using the following notation:

P= units produced in a month

t= time

production in a month January is P1 and so on ignore tax effects

Required:

I- Build the model to using the notation above for each of the following Items for use in the model to calculate the company’s earnings available for dividends at June 30

1.            Revenue

2.            Variable manufacturing cost of sales

3.            Total selling and administrative expense

4.            Depreciation

5.            Licensing fees

6.            Interest expense

II= Advise Ahmad what would change in your model if you start continuous production rather than on order production as the policy is now.

III what would change in your model if the company issued preferred shares